FSR Applauds House for Protecting Consumers, Preserving Arbitration

Today the House acted to put the interests of American consumers first by ensuring access to low-cost arbitration, which provides more timely resolution and a process that on average yields almost 170 times more compensation for the consumer.

FSR Applauds House for Protecting Consumers, Preserving Arbitration

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FSR Applauds House for Protecting Consumers, Preserving Arbitration

Urges Senate to immediately overturn CFPB’s arbitration rule

WASHINGTON – The Financial Services Roundtable (FSR) today applauded the U.S. House of Representatives for passing a resolution under the Congressional Review Act (CRA) to repeal the CFPB’s rule restricting the use of arbitration agreements. According to the CFPB’s own study, consumers obtained an average of $5,389 through arbitration resolution versus $32.35 in complex class action lawsuits requiring legal representation. The study also found consumers using arbitration resolved disputes 12 times faster than litigation.

“Today the House acted to put the interests of American consumers first by ensuring access to low-cost arbitration, which provides more timely resolution and a process that on average yields almost 170 times more compensation for the consumer,” said FSR’s Head of Government Affairs Anthony Cimino. “We look forward to working with the Senate to preserve this necessary tool to resolve disputes quickly and cost-effectively.”

Yesterday, FSR joined several financial trades urging Congress to immediately overturn this harmful rule. To read the full letter, click here.

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About The Author

The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs.

The vote represents an important step toward improving the regulatory system to meet the needs of American businesses and consumers.

“This industry provides vitally important services to nearly every American – every day. Affordable access to financial services is key to growing the American economy and fueling the American dream.” -Tim Pawlenty, FSR CEO

Financial Services Roundtable is the leading advocacy organization for America’s financial services industry. For updates, sign up below ↓